University of the Philippines – Diliman

Extension Program in Pampanga

A MARKETING PLAN FOR

MILLS ENTERPRISES

Presented by:
Bruzo, Jeshurun P.
Carreon, Amiel T.
Marketing Plan Outline
 Company Background
 External Analysis
 Internal Analysis
 Strategic Options Generation
 Product Strategies and Programs
 Place Strategies and Programs
 Promotions Strategies and Programs
 Price Strategies and Programs
 Financial Forecasts
Chapter 1: Company Background

Located in Sta. Cruz, Lubao, Pampanga, Mills Enterprises emerged in

2012 in response to the challenge on how to increase small farmers’
income amidst good harvest but uncontrolled product wastage and
spoilage due to absence of adequate post-harvest facilities and value
adding processes.
 Product lines include:
Chili Paste, Chili Flakes,
Chili Powder, Shrimp
Paste, Tomato Jam,
Tomato Preserved, and
Pickled Cucumber.
Farm produce
Chapter 3: External Analysis
 Macro Study

The industry of Organic Food is a growing market worldwide. Statistics showed that revenues
increased from US$17.9 Billion in 2000 to US$59.1 Billion in 2010.

In the Philippines, it is considered a progressing industry with the present consumption of

vegetables has been increasing over time (Digal and Montemayor, 2007).

Food and Nutrition Research Institute (DOST-FNRI) survey results in 2015 showed that per
capita intake of fruits and vegetables failed to meet the WHO recommended intake of 400g
across the country.

It is noteworthy that the Philippine government supports Organic Farming in the country
through its Executive Order No.481 (otherwise known as Promotion and Development of
Organic Agriculture in the Philippines) as it recognizes the potential of increasing value-added
in agricultural export and local consumption of products.
Chapter 3: External Analysis
 Macro Study

Market Size: (% of Population) x (Freq of Use) x (Price/serving)

(30% x 2,609,744) x (4times x 12 months) x (P350)

Php 13 Billion is the value of the enterprise’ market

Chapter 3:External Analysis
 Micro Study

Customer Analysis

The market survey for Organic Agricultural Products Consumption was conducted from July 7-
20, 2019. A two-week survey provides adequate time for researchers to capture wide array of
customers in Pampanga.

A Simple Random Sampling in the form of an online survey was used to select respondents for
this survey. The list of target respondents is generated by managing the researchers’ Facebook
friends list.
Chapter 3: External Analysis
 Micro Study
Survey Results Highlights
Average
Educational
Age Sex Occupation Civil Status Monthly
Attainment
Income
The middle-aged 66.7% of 61% of 67% of Majority of
group (21-40 respondents respondents are respondents are respondents are
years old) have a tertiary employed, with single, while mid to high-
dominates the education, while majority of them 37.1% are income earners
profile of 22.9% have a comes from the married with Php30,000
respondents at post-graduate Government and above
77.2%. A younger Equally degree sector, followed average monthly
profile of by the service income
respondents was distributed industry. On the
also reported. other hand,
16.2% of
respondents are
business
owners/self-
employed
Chapter 3: External Analysis
 Micro Study

Survey Results Highlights

Chapter 3: External Analysis
 Micro Study

Archetypes

The Green Minded – the organic foods enthusiasts

Usage: frequent buyers of organic products (3-4 times in a month;

consumes 5 servings or more in a month; spends Php351 and above for
buying such products; Nutritional benefits is the main factor
considered in buying

Attitude: healthy food alternatives is the main reason for buying;

Image: usually buys the product in public market

Chapter 3: External Analysis
 Micro Study

Archetypes
The Proud Local - advocates the use of local products

Usage: buys the products twice a month; consumes 3-4 servings in a

month; spends Php251-Php300 and product promotion is important for
buying such products

Attitude: to patronize local products and to help farmers/IPs are the

most cited reasons for buying

Image: usually buys the product directly from the stores

Chapter 3: External Analysis
 Micro Study

Archetypes
The Family Oriented - family is the main purchase influencer

Usage: the most frequent buyers/consumers of organic products (5

times or more in a month); spends Php351 and above for buying such;
consumes 5 servings or more in a month; price and size of products are
the main motivation for buying

Attitude: for family consumption is the main reason for buying

Image: usually buys the products from the public market

Chapter 3: External Analysis
 Micro Study

Archetypes
The Business Minded - reseller of organic products

Usage: buys the products once a month; spends Php351 and above for buying

Attitude: buys the products for resale

Image: usually buys the products directly from the producer

Chapter 3: External Analysis

PTM (Consumer Market)

Given the geographical location of Mills Enterprises and scope of operations, its primary target
market encompasses Pampanga residents who were classified as organic food enthusiasts with high
preference on locally produced organic agricultural products.

Organic food enthusiasts segment includes male and female individuals, middle-income earners or
the “masa” segment, characterized by having a frequent buying pattern (2-4 times in a month).
Chapter 3: External Analysis

STM (Organizational Market)

Mills Enterprises also has the potential to serve organizations in Pampanga such as schools and
restaurants. This segment may not be frequent buyers, but has high volume buying patterns. This
market underscores their reason for buying organic agricultural products for profit purposes.
QDP Analysis
Demand
Do you buy organic agricultural products?

Highlighting 96.2% of Pampanga respondents who are considered as organic food enthusiasts, this
indicates that there is a substantial demand and market for organic agricultural products.
QDP Analysis

The survey results further indicate that product quality (Nutritional Benefits) has been the topmost
consideration of customers for buying organic agricultural products, while considering price and
product delivery as secondary considerations of customers. Customers have defined quality product
as a combination of taste and nutritional benefits.
QDP Analysis

Customers become rational in purchase decision when it comes to product price. This affects
customer perception on product quality and overall satisfaction. The market of organic
agricultural products would want reasonable price, but not necessarily low price.
QDP Analysis
How much are you willing to spend for buying organic agricultural products?

Majority or 35.2% of the respondents are willing to spend P351.00 and above when
purchasing organic products. It indicates that organic products are considered premium
compared with highly commercialized food. However, it is important to note that because of
the premium price, it is expected that organic products should be able to meet the quality
standards like the authentic taste, retained natural flavors and freshness of the product.
QDP Analysis

Good delivery of products is defined by customers as the efficiency of availing and accessing
the right product for them and punctually meeting customer’s demand. This has been one of
the contributing factors in maintaining customer loyalty and an essential factor in driving the
company’s profitability.
QDP Analysis

Where do you usually buy organic agricultural products?

The top two (2) answers in the survey are Grocery Store (33.3%) and Public Market (29.5%). Organic
products are traditionally produced products, and it should be placed through traditional channels
like groceries and public markets. Unlike highly commercialized food, they adopt modern retail
trading to reach their consumers. The most important thing to consider is to be able to deliver the
demand of the target customer at the right time and at the right place.
QDP Analysis
Mills Enterprises Products

Quality – Organic chips are deep-fried products, slightly bland taste with very little
sweetness flavor. Chips are dried but not oily with crisp to hard texture. It is packed using 4-
sides seal aluminum foil with sticker. Overall, it can still improve its taste and flavor. The
packaging can also be replaced using kraft paper to be more associated with organic.

Delivery – Current distribution of products is only through direct selling or walk-in at their
farm, tapping reseller and a selling booth at Waltermart San Fernando. There is more to
explore for the enterprise on both the traditional and modern retail trade.

Price – Chips are sold at only P15.00 for the smallest packaging. Perhaps, Mills’ offer is the
lowest among its competitors. The product should develop a differentiation in order to be
the price leader in the competition.
Chapter 3: External Analysis
 Micro Study

Competitor Analysis
Quality Price
Chapter 3: External Analysis
 Micro Study

Location Analysis
Mills Enterprises is located at Lubao, a
first-class municipality in the province
of Pampanga, Philippines. It is bounded
by the municipalities of Guagua in the
north, Sasmuan on the east,
Floridablanca on the west and Orani,
Bataan on the south. Lubao’s terrain is
generally flat.

Of the 2, 609,744 total population of

Pampanga, 160, 838 of its population
comes from the municipality of Lubao.
This means that Mills Enterprises has a
large market to serve.
Chapter 3: External Analysis
 Micro Study

Location Analysis

Lubao is the largest rice producing

town in the province of Pampanga. Out
of 15,731.11-hectare land area, 66.60%
or 10,476.1 hectares are being utilized
for agriculture. Of this, 8,890.2
hectares are used for crop production.
This has been a good source of raw
materials for the company.
Chapter 3: External Analysis
The researchers define the superior player in the industry as a company who has a wide assortment of
high-quality market offerings that are ethically produced and have the cleanest possible ingredients that
are good for the people and the planet.

Aside from enhancing organizational capacity, Mills Enterprises shall become a superior player in the
industry by focusing on the following:

Customers

Partners Solutions

What's
New
Chapter 3: External Analysis
In striving to attain a higher market position in the production of quality and affordable organic
agricultural products, strategic plans for Mills Enterprises will be at the core of its processes and
initiatives. Ultimately, the strategic initiatives of Mills Enterprises are geared towards the attainment of
Key Success Factors linked to the company’s strategic focus.

Long-term
Operational
Relationship
Efficiency
with farmers

Key Success Product

Increased
Factors Development
and Innovation
Market Share

Financial
Strength
Chapter 3: External Analysis
 Opportunities
O1 Vast Agricultural Land Area of Lubao, Pampanga
The vast area of agricultural land in the municipality of Lubao, Pampanga facilitates the efficient supply and delivery of
raw materials for production
O2 Government Regulations and Policies that Promote Agri-Business, Organic Farming and Healthy Alternative Food
The implementation of government regulations, policies and enactment of pertinent laws relative to the development of
the agri-business industry and the agricultural sector, pave the way for various opportunities in the operations of Mills
Enterprises.
O3 Lubao International Balloon and Music Festival (LIBMF)
In the past years, LIBMF has attracted a large volume of tourists to visit the municipality of Lubao, which can be a right
venue for Mills Enterprises to market their products to the event goers.
O4 Growing Market for Health-Conscious Customers
Statistical studies have shown that an increasing trend in the number of health-conscious individuals in the country is
observed.
O5 Development of Food Terminal in Clark
Feasibility studies are being conducted for the development of a Food Terminal inside the Clark Freeport Zone (CFZ). This
food terminal in Clark will facilitate the inter-island transport of farm produce and export of goods in the international
market. This is an opportunity for Mills Enterprises to cater a larger market including international market.
O6 Presence of Various Network and Linkages to Different Institutions & Agencies
Although the enterprise is a sole proprietor in nature, it can partner with various private institutions and government
Chapter 3: External Analysis
 Threats
T1 Competitor’s Innovation and Digital Platform
Mills Enterprises operates in a competitive environment and faces great threat with direct and indirect
competitors. Hence, continuous innovation of the company is required to have a competitive advantage.
T2 Inadequate Farm-to-Market Infrastructure in Lubao
The inadequacy of farm-to-market infrastructure, including roads and logistics services, are an important
hindrance to the supply and value chains of the agri-business.
T3 Climate Change
The uncontrollable effects of climate change have a destructive impact on the company’s efficient flow of
raw materials and production. Further, it could damage farmers’ crops which could paralyze the operations
of agri-business.
T4 Changing Customer Preferences
Mills Enterprises should be well guided by market and industry information to consistently satisfy the
changing preferences of customers.
T5 Unstable Economic Condition
The general business strategy may be adversely affected by economic downturn and volatile business
environment. This could affect the decision-making process of customers in spending money for buying
organic agricultural products and may result in switching other alternatives that are more cost-efficient.
T6 Strict Regulations in the Market
The Food and Drugs Administration (FDA-Phils) is requiring all food manufacturers to comply with the A.O.
153 s.2004 or the Revised Guidelines on Current Good Manufacturing Practices.
Chapter 4: Internal Analysis
 Strengths

S1 - Products Employees of the enterprise are competent with established standard production operating procedures
The owner and production personnel are technically knowledgeable on food processing and capable
to develop new products. Latest product being develop by the enterprise is Roti – a flatbread made
of sweet potato.
S2 - Products Utilization of Appropriate Ergonomics in the Production Facilities

Mills Enterprises employs appropriate ergonomics in the production facilities to ensure that work
processes are being done comfortably and efficiently by the workers which improves employee
productivity.
S3 - Products The products of the firm are organically grown, processed without any use of pesticides and
preservatives.
S4 - Products Synergies and Collaborations with different agencies and institutions
The enterprise maintains a good relationship to various agencies like Department of Industry (DTI),
Department of Science and Technology (DOST) and Florida-Lubao Organic Farmers Association
(FLOFA) as the major suppliers of raw materials.
S5 - Price Activity-Based Costing of Products
The pricing strategy of Mills Enterprises uses an activity-based costing which considers the cost of
all activities involved in the production. This allows the enterprise to manage the company’s costs
and develop a competitive pricing strategy.
Chapter 4: Internal Analysis
 Weaknesses
W1 - Products Limited Product Offerings
It is deemed that the existing market offerings of Mills Enterprises are insufficient to achieve
competitive advantage.
W2 – Lack of Brand Appeal
Products The product design, packaging and company lacks appeal to the consumer. Nutrition facts analysis
cannot be found in the packaging material. The firm uses ordinary packaging with sticker labels and
integrity of sealing is inconsistent.
W3 - Products Lack of Product Certification
Currently, the product certification of Mills Enterprises is still pending. Product certification from
certifying bodies ensures that a certain product has passed quality assurance and safety tests in
which enhances product reputation.
W4 – Insufficient and Inconsistent Promotional Efforts & Marketing Activities
Promotions The enterprise does not have consistent promotional efforts and marketing activities that limits its
capability to reach the target market of the company.
W5 – Place Inadequate post-harvest facilities that will be very useful especially during the peak of production or
harvest.
W6 - Place Insufficient Distribution Channels
It is deemed that the enterprise has inadequate distribution channels that restricts the enterprise
to serve larger market
Chapter 5: Strategic Options Generation
Internal /
Opportunities Threats
External
Strengths S3O4 Product is natural/ no preservatives; S4T6 The enterprise has good synergies/
Micro study – Healthy food is preferred by the market. collaborations with the different
organizations, and this can be utilized
Strategy 1: Package the product that will communicate the healthy with the strict requirements in the
benefits of eating organic products. This will maximize the potential of market.
organic product, which is healthy and nutritious, and preferred by the
market. Strategy 2: Avail of the various
technical services provided by the
different government agencies (eg.
cGMP documentation, technical
trainings and consultancies of DOST) in
order to comply with the requirements
of FDA-Phils.
S1O2 The firm has the capacity to develop and improve its products while
the government is requiring schools to offer nutritious food only.

Strategy 3: Develop products that are healthy alternatives snack

intended for students in support to the requirement of the government
to schools. It should be appealing and with acceptable taste to the
target market.
Chapter 5: Strategic Options Generation
Internal / External Opportunities Threats

Weaknesses W6O6 The firm has less available capital but has an W5T3 Climate change is a threat in the raw
established network of linkages to various agencies and material supply of the enterprise and the firm
institutions. lacks post-harvest facilities to store its produce
especially during the peak season.
Strategy 4: a.) Apply for accreditation to TESDA as
training school in Organic Farming. This will generate Strategy 5: Look for available technologies or
additional income to the firm that will lessen its techniques to abate climate change. This can
financial difficulties. be done by reduction of carbon dioxide
b.) Get funding support from Non-Government emissions, reuse of resources (water),
Organizations or Foundations that are helping those mulching, green house, crop rotation (heat
social entrepreneurs. resistant), etc. Seek government assistance
or private institutions to address the concerns
on climate change and post-harvest facilities.
Study also the activity-based costing of the
products and review the contribution margin
to have a favorable bottom line.
Chapter 5: Strategic Options Generation
Internal / External Opportunities Threats

Weaknesses W6O4 Low visibility in the market. The firm
has insufficient distribution channel in the
public market, but it was identified as a
market channel opportunity based on the
market study for organic products.
W4T1 The enterprise lacks promotional
activities and Facebook account not
updated (since 2016), while digital and
high-tech apps continuously invade
business platforms

Strategy 6: The firm will ensure product Strategy 7: The firm shall institute a
availability in other channels like public digital platform for the business
market, groceries and supermarket, promotion to ease the communication
pasalubong centers and government to its customers.
institutions. The government is also
requiring schools, universities to offer
only healthy food among students. Fitness
centers, marathons and Zumba activities
are also indications of healthy lifestyle
trend.
Chapter 5: Strategic Options Generation

Company Vision Statement

By 2022, Mills Enterprises shall be the premier producer of organic agricultural products in
Pampanga through farmer-led sustainable agricultural practices and entrepreneurship.

Company Mission Statement

Demonstrate good agricultural practices through sustainable farming and provide high quality
organic produce for our community through value-adding processes; and
Transform the lives of marginalized farmers in the community by involving them in entrepreneurial
activities and local trade.
Chapter 5: Strategic Options Generation

Marketing Plan Objective

To increase market share through an enhanced brand equity for Mills Enterprises and
achieve a 90% increase in gross sales by the end of 2022.
Chapter 6: Product Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022
Generate 90% increase Increased in 30% increase 30% increase in 30% increase in Firm is operating below its capacity
in production by the annual total in units of units of annual units of annual wherein its production is only 1-2 days
end of 2022 (in production annual production production per week. With the projected increase
reference to 2019 production in the market, the firm needs to
baseline) produce almost double by the end of
PI: Number of
Year 2022. This can be done by the
units produced in
following:
a year
a. Proper scheduling of production
b. Streamline and eliminate non-
value adding processes in the value
chain
c. Implement Inventory Management -
secure raw material requirements
in coordination with FLOFA
Chapter 6: Product Strategies and Programs

Performance Indicators (PI)

Objectives Key Results Areas Strategies and Programs
2020 2021 2022
To improve product Product 2 2 2 Q1 2020 - Develop a new logo design
palatability and brand acceptance and that is reflective in the company’s
identity and establish brand identity offerings. Implement R&D strategies to
at least 6 core improve product palatability. Improve
products by the end of product packaging (use of kraft paper)
PI: Number of
Year 2022 that will appear organic in the market.
core products
Conduct taste sampling or market
established (fast-
test. Determine the variant most
moving product)
acceptable. Q2 2020 – Product
launching and establishment of at
least 2 core products.
Y 2021 – Additional 2 products
Y 2022 - Additional 2 products
Chapter 6: Product Strategies and Programs

Existing Company Logo Proposed Company Logo

Proposed Packaging for Chips

Newly Developed Packaging for Chips
in a box
Proposed Packaging for Paste Products
Chapter 7: Place Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022
Encourage local Increased Y2020 Q1 Request product placement
traders and outlets to marketing at DTI Negosyo Center and DOST
carry the products of channel OneSTore
Mills Enterprises by 3 3 participation 3 participation Q2 Mills Enterprises will set up its
participating in annual PI: participation to trade to trade product booth to the Annual Lubao
trade fairs and events a. Number of to trade fairs/events fairs/events International Balloon and Music
(at least 3 times a participated trade fairs/events Festival (LIBMF)
year) fairs/events Q3 Participation to DOST’s product
and new market Direct Selling Direct Selling exhibition and Science and Technology
channels (at least 2 b. Number of new Direct Selling Waltermart Waltermart Fairs
new market) market channel Waltermart DTI DTI Q4 Participation to DTI’s trade fairs in
+ DOST DOST SM Pampanga
DTI Negosyo + CSFP
Center Public markets Angeles Y2021 Penetrate Key Cities – City of
and DOST or stores in key + San Fernando and Angeles City
OneSTore cities (CSFP and Schools and
Angeles) SM Foundation Y2022 Upon acquisition of License to
Operate from FDA – Mills Enterprises
can introduce products in schools and
foundations
Chapter 7: Place Strategies and Programs

DOST Product Exhibit and

Science & Technology Fair

DTI Trade Fair

Product Booth at LIBMF
Chapter 8: Promotions Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022
Increase social media Increased brand 20 posts 25 posts per 25 posts per The enterprise will utilize below the
presence to stimulate awareness month month line strategies to increase brand
per month
brand recall awareness via social media platform.

Mills Enterprises will create its

PI: Facebook Page
Facebook account and will dedicate
likes
personnel that will be in-charge in
No. of posts in
administering and monitoring said
Facebook
account.
(including
Create social media posts featuring
views/likes)
product offerings and other relevant
company activities aimed to generate
page engagement among the
followers. (show measure on
engagement and other digital stats)
Chapter 8: Promotions Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022
Generate brand Increased brand 12 promos per 12 14 The enterprise will implement a
loyalty through the loyalty year calendar of marketing activities to
implementation of at ensure monthly promos and activities
least 1 promotional are being carried out each month.
PI: No. of
activity per month
Conceptualize promos or customize
promotional
promotional products during special
activities/
occasions (e.g. Valentine’s Day,
gimmick
Mother’s Day, Christmas and other
special events) that will help the
enterprise increase its brand
awareness. Join special activities like
Lubao International Balloon and Music
Festival and be known as a homegrown
brand for local and foreign tourists in
Chapter 8: Promotions Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022
Increase brand Increased brand 180 360 540 The enterprise will capitalize its
awareness specifically awareness strong relationship with government
in Lubao-LGU institutions by partnering with the
Municipal Tourism Office. Include in
the tour package on travelling Lubao,
PI: No. of local the chance to visit and buy organic
and foreign products at Mills Enterprises.
tourist visited at
Mills Enterprises
production plant
in Lubao
Chapter 9: Price Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022

Gain competitive 100% 100% 100% 100% In conjunction with value-based

advantage through the implementation implementati implementation implementation pricing, Mills Enterprises will allow
implementation of of psychological on of of psychological of psychological some adjustments in the product’s
price adjustments pricing psychological pricing by the pricing by the price using psychological pricing.
during the first pricing by the end of 2021 end of 2022
quarter of 2020 PI: % end of 2020 Price adjustments will be implemented
implementation for existing and new products effective
of psychological on the first quarter of 2020.
pricing for all the
company’s
products by the
end of each year
Chapter 9: Price Strategies and Programs
Performance Indicators (PI)
Objectives Key Results Areas Strategies and Programs
2020 2021 2022

Provide economic 100% 100% 100% 100% Develop packaged bundling for
value to customers implementation implementati implementation implementation complementing products that are slow-
while gaining profits of bundle pricing on of bundle of bundle of bundle moving and best-seller and apply the
for slow-moving for pricing for pricing for pricing for bundle pricing by the end of each year.
products best-seller appropriate appropriate appropriate This will help reduce inventory and
products and products by products by the products by the increase value perception of
slow-moving the end of end of each end of each customers.
products each year. year. year.

PI: Number of
packaged bundles
Chapter 10: Financial Forecasts
Income statement assumptions:

 90% increase in production will translate to 90% cumulative increase in sales (2020-
2022)

 The projected increase in sales of organic processed food will contribute an increase
of 40% in the total business of Mill Enterprises (60% organic farming, 40%
manufacturing)

 Wages of the four farmers are excluded, only manufacturing business was considered
in the FS estimates
Chapter 10: Financial Forecasts
Mills Enterprises Income Statement:
Chapter 10: Financial Forecasts
Mills Enterprises Balance Sheet:
Chapter 10: Financial Forecasts
Mills Enterprises Balance Sheet:
Chapter 10: Financial Forecasts
Mills Enterprises Cash Flow Statement:
End of Presentation.
Thank you.